Is Crypto Market Prepared For A Divided U.S. Government?

Every two years, elections are held to choose members of the House of Representatives and the Senate. Additionally, because these chambers are legislative entities, crypto legislation is a crucial midterm waitlist.

Bipartisan Congress and crypto legislation

As multiple reports suggest, based on pollster numbers, that Republicans could gain a majority in the houses. With Biden leading for at least two more years, the government and Congress could remain partisan on virtual asset legislation.

Republican control of Congress won’t immediately change how cryptocurrencies will fair in future laws, despite the fact that they are less likely to be rigid about financial rules and are more likely to emphasize the necessity for the U.S. to allow crypto innovation. The leaders of the U.S. regulatory agencies continue to be chosen by Democrats, and President Joe Biden still needs to approve any new legislation before they become a new law.

Negotiations On Crypto Will Continue

According to Keith Noreika, an executive vice president at Patomak Global Partners and a former director of the U.S. Office of the Comptroller of the Currency,

“In a split government, the checks and balances intended by our founding fathers are really in play, and you often see congressional committee chairs try to exert their influence and authority over regulatory agencies and regulated industries.”

Mike Conaway, a former chairman of the House Agriculture Committee, expressed confidence that talks on cryptocurrencies won’t be derailed, even if the next year’s administration is divided.